Mr. Renaud Adams reports

IAMGOLD ANNOUNCES $400 MILLION TERM LOAN FINANCING

Iamgold Corp. has entered into a five-year second lien secured term loan in a principal amount of $400-million from three institutional lenders. The second lien term loan is part of the continuing initiatives by Iamgold to pro-actively increase the strength of its balance sheet during the construction, commissioning and ramp-up of the Cote gold project. The construction budget and schedule of Cote gold remains on track, with the project approximately 80 per cent complete as of the end of March, 2023. All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.

Oaktree Capital Management LP, through funds managed by Oaktree, is the lead lender, with significant participation by Varde Partners and CI Global Asset Management.

"Following the strategic transactions announced at the end of last year, which have positioned Iamgold with sufficient funding to complete the construction and ramp-up of Cote gold as currently contemplated, the company has continued to work on improving its balance sheet and liquidity. The announcement today is an important step for the company in its objectives of putting in place a more appropriate capital structure and position itself for an ultimate return to the 70-per-cent ownership interest in Cote gold in the future. Cote gold remains on track for production in early 2024 and is a key pillar in our strategy to position Iamgold as a leading high-margin gold producer," said Renaud Adams, president and chief executive officer of Iamgold.

Maarten Theunissen, chief financial officer of Iamgold, commented: "This term loan increases the financial flexibility and liquidity of the company and is well suited to support the completion of the construction of the large-scale, long-life Cote gold project that is expected to produce significant cash flows once in production. The $490-million revolving credit facility, which was being used and forecast to be near fully drawn by completion of construction, is now expected to remain almost fully undrawn and provide a prudent source of further liquidity should the company so require in response to unforeseen changes in the operating or macroeconomic environment during a critical period for the company as Cote ramps up to full production.

"We are pleased to partner with leading investors such as Oaktree, Varde Partners and CI Global Asset Management as we execute on our repositioning of Iamgold," continued Mr. Theunissen. "I would also like to thank the syndicate of lenders in our existing revolving credit facility, which have consented to the term loan and supported Iamgold as we closed multiple strategic transactions over the last six months for the benefit of all stakeholders."

Facility highlights

The second lien term loan is fully financed at closing today and is the outcome of a comprehensive and competitive process conducted by the company together with its financial and legal advisers. Terms of the second lien term loan include the following:

• Aggregate principal amount: $400-million; original issue discount of 3 per cent;
• Term: five years;
• Mandatory amortization: none;
• Interest rate: floating rate equal to the sum of the secured overnight financing rate (SOFR) plus 825 basis points, and subject to a 2-per-cent SOFR floor;
• Security: secured by a second-ranking lien on substantially all of the assets of Iamgold;
• Call provisions: make-whole premium for first two years, 104 per cent after year 2, 101 per cent after year 3 and 100 per cent thereafter;
• Financial covenants:
  • Minimum liquidity of $150-million defined as consolidated cash plus available amounts under the company's revolving credit facility;
  • Consolidated coverage ratio of 1.5 times, defined as trailing 12-month consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) to consolidated interest expense.
• Restrictive covenants, events of default, and other terms and conditions: substantially consistent with the terms and conditions of the existing indenture governing the company's 5.75 per cent senior notes due 2028, subject to certain agreed changes.

The term loan has no mandatory requirements for gold or other forms of hedging, cost overrun reserves or cash sweeps.

Citi is acting as financial adviser and Goodmans LLP as legal adviser to Iamgold in connection with the term loan.

About Iamgold Corp.

Iamgold is an intermediate gold producer and developer based in Canada with operating mines in North America and West Africa. The company is building the large-scale, long-life Cote gold project in Canada in partnership with Sumitomo Metal Mining Co. Ltd., which is expected to commence production in early 2024. In addition, the company has an established portfolio of early-stage and advanced exploration projects within high-potential mining districts in the Americas. Iamgold employs approximately 3,200 people and is committed to maintaining its culture of accountable mining through high standards of environmental, social and governance (ESG) practices, including its commitment to Zero Harm, in every aspect of its business. Iamgold is listed on the New York Stock Exchange and the Toronto Stock Exchange and is one of the companies on the Jantzi Social Index (JSI), a socially screened market capitalization-weighted index consisting of companies which pass a set of broadly based environmental, social and governance rating criteria.

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